How Do You Get The Federal Rebate On Solar Panels

The federal solar tax credit also known as the solar investment tax credit or itc is the single most important solar incentive available in the united states.

How do you get the federal rebate on solar panels.

The federal solar tax credit also known as the investment tax credit itc allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes. The itc applies to both residential and commercial systems and there is no cap on its value. If say your federal taxes are 6 000 for 2020 and you re eligible for a 7 000 tax credit for installing a solar system at your house you can claim the leftover 1 000 as a credit toward your. Federal solar tax credit.

The solar tax credit expires in 2022. After that the percentage steps down each year and then stops at the end of 2021. The full credit is available through the end of 2019. If you install solar panels before the end of 2020 you will receive a tax credit that is equal to 26 percent of the cost of your solar installation.

Credits for approved solar installations installing alternative energy equipment in your home can qualify you for a credit equal to 30 of your total cost. If you spend 10 000 on your system you owe 2 600 less in taxes the following year.